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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Thursday, August 17, 2023

Salesforce Valuation


Salesforce Inc's intrinsic worth is 155 billion USD compared to Salesforce Inc's market capitalization of circa 202 billion USD, according to Wolfteam Ltd.'s estimates.

Salesforce is arguably the world's number one client relationship management system. The Customer 360 suite and the Artificial Intelligence are the company's flagship products, the Customer 360 being a unified system for customer leads creation, marketing and sales management or client relationship management for short, CRM.

Salesforce's revenue grew on average by 21 % for the last five years with a 6.5 % net profit margin on average.


For the last four quarters, however, Salesforce revenue grew on average by 12.7 % and Salesforce exhibited a net profit margin of 1.1 % on average for the last four calendar quarters year on year. Such scant profitability and 11.28 % year on year revenue growth rate in the last reported quarter do not justify Salesforce's market capitalization of 202 billion USD .

At a Price/Earnings ratio of 545.05 Salesforce is overvalued, according to Wolfteam Ltd.'s calculations, which are based on growth and risk projections, but also on comparison multiples inside the Infrastructure as a Service, cloud computing services producing companies' multiples.


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